New York State Department of Taxation and Finance TSB-M-94 (6) Corporation Tax Taxpayer Services Division (4) Income Tax (6) Miscellaneous Tax Technical Services Bureau (6) Sales Tax August 24, 1994 Important Notice Limited Tax Amnesty Program New York State is conducting a limited tax amnesty program. The three Applicants will not be eligible if they filed a New York tate personal month amnesty period begins on September 1, 1994, and ends on income tax return and, if applicable, a city nonresident earnings tax November 30, 1994. Tax amnesty is an opportunity for previous return for the period for which New York State tax amnesty is sought. nonfilers to file and pay certain back taxes without penalty or criminal prosecution. Corporation Franchise and Other Business Taxes Only individuals and businesses meeting limited criteria and owing Only businesses incorporated or organized outside New York State, or particular taxes incurred during specific time periods are eligible for individuals domiciled outside New York for more than one-half of the amnesty. applicable year or other taxable period for which amnesty is sought, are eligible to apply for amnesty for business taxes. To be granted amnesty, those who meet the requirements must file the required returns and pay any taxes owed, plus interest. Unpaid penalties The taxes covered are the taxes (including surcharges and fees) imposed will be waived, and those granted amnesty will be protected from under the following Articles of the Tax Law: criminal prosecution and any administrative penalty. • 9 (transportation companies, utilities, etc.) The following taxes are included in the limited tax amnesty program. • 9-A (general business corporations) Compensating Use Tax • 13-A (petroleum businesses) The compensating use tax is the companion to the state and local sales tax. Generally, it applies to taxable goods or services brought into or • 32 (banks) shipped into New York and used in New York by resident individuals or businesses operating in the state. For example, a computer that a business • 33 (insurance companies) purchases and has shipped into the state without the sales tax being charged is subject to a use tax equal to the sales tax. To be eligible, taxes owed must be for taxable years or taxable months beginning on or after January 1, 1986, and ending before December 31, Only resident individuals or small businesses (businesses having an 1993. annual New York State payroll, if any, of less than $1 million in the taxable year during which the taxable use occurred) may apply for Applicants will not be eligible if they: amnesty for compensating use tax. -- filed a tax return or report or paid tax for the period and tax type To be eligible, use tax must be owed on property or services used in-New for which amnesty is sought, or York State between June 1, 1986, and May 31, 1993. Applicants will not be eligible if they: -- with regard to the petroleum business tax, were registered as a petroleum business under Article 13-A before or during a taxable - filed a sales or use tax return for the period in which he taxable month for which amnesty is sought. use occurred, or - were a registered sales tax vendor at or before the time of the General Qualifying Requirements taxable use. The following general requirements must be met in order to qualify for amnesty: Personal Income Tax • The application for amnesty must be in writing (Form AM-l). Only individuals, trusts, or estates that were nonresidents during the period for which amnesty is sought may apply for amnesty for New York • Appropriate tax returns must be completed and submitted. State personal income tax or New York City or Yonkers nonresident earnings taxes. Residents of New York State are not eligible for amnesty • Taxes and related interest must be paid for the period for which for New York State personal income tax or either of the cities' amnesty is sought. Failure to pay the taxes plus interest nonresident earnings taxes. invalidates any amnesty granted under this program. To be eligible, taxes owed must be for taxable years beginning on or after • Outstanding assessments (for tax periods other than those for January 1, 1986, and ending before December 31, 1993. The last which amnesty is sought) of any tax administered by the New calendar year taxpayers are eligible for amnesty is 1992. York State Tax Department which are final must be paid or a deferred payment agreement must be entered into. Failure to comply with all the terms of a payment agreement will result in revocation of amnesty. -2- TSB-M-94 (6) Corporation Tax (4) Income Tax (6) Miscellaneous Tax (6) Sales Tax August 24, 1994 Additional Disqualifying Factors Forms and Instructions Applicants will not be eligible for amnesty if they: For additional information on the amnesty program, call toll free (from New York State only) 1 800 CALL TAX (1 800 225-5829). • received any benefit under the New York State amnesty program Conducted in 1985, From areas outside New York State, call (518) 438-8581. • received any notice of tax due (including a notice of determination or notice of deficiency) from the Tax Department for a tax and To order forms, call toll free (from New York State only) 1 800 462 specific tax period for which amnesty is sought, or 8100. • received any notice from the Tax Department that indicates the From areas outside New York State, call (518) 438-1073. Department's knowledge that the applicant may be subject to the tax and tax period for which amnesty is sought. You may also write to the following address for forms and Amnesty will not be granted to any applicant who: instructions: • is a party to any criminal investigation being conducted by an AMNESTY agency of New York State or any of its political subdivisions, or NYS TAX DEPARTMENT BUILDING 8 • is a party to any civil or criminal litigation which is pending, on the W A HARRIMAN CAMPUS date of the amnesty application, in any court for nonpayment, ALBANY NY 12227 delinquency or fraud related to any of the taxes designated under the amnesty program. Civil litigation is not considered pending if the taxpayer withdraws from the litigation before the granting of amnesty. NOTE Amnesty Benefits New York City is also conducting a tax amnesty from September 1, 1994, to November 30, 1994, for certain When amnesty is granted, penalties will be waived. These include penalties taxes imposed and administered by the city. The New for failure to pay tax, failure to file a return or failure to pay estimated York City taxes covered under its amnesty are the: personal income taxes covered by the waiver. • commercial rent tax (for periods ending on or Waivers will apply separately to each tax and tax period for which amnesty before May 31, 1993); applies. Those granted amnesty will be protected from civil, administrative or criminal action or proceedings related to the tax and the period covered • the utility tax (for periods ending on or before by the waiver. March 31, 1994); Once amnesty has been granted for a particular tax, and all of that tax has • the real property transfer tax (for taxable events been paid, the state may not assess the taxpayer for any amounts of that occurring before April 1, 1994); and type of tax later found to be due for periods prior to the first period for which amnesty is available. In this instance the tax for that prior period is • the hotel room occupancy tax (for periods forgiven. ending on or before February 28, 1994). No refund or credit will be made or allowed of any penalty paid prior to the More information is available from the New York City time the taxpayer makes a request for amnesty. Further, unless the Department of Finance. Call: (718) 935-6000 or (718) Commissioner of Taxation and Finance redetermines the amount of the 935-6675. Write: NYC Department of Finance, taxes and interest, no refund or credit will be allowed with respect to taxes Outreach Tax Form Department, 25 Elm Place, 4th paid under the amnesty program. Floor, Brooklyn, NY 11201.
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